Kornit Digital (NASDAQ:KRNT) Shares Down 7.4% – Time to Sell?

Kornit Digital Ltd. (NASDAQ:KRNT) dropped 7.4% during mid-day trading on Thursday . The company traded as low as $14.67 and last traded at $15.2650. Approximately 469,956 shares traded hands during mid-day trading, an increase of 37% from the average daily volume of 343,681 shares. The stock had previously closed at $16.48.

Trending Headlines about Kornit Digital

Here are the key news stories impacting Kornit Digital this week:

• Positive Sentiment: Q1 revenue beat expectations, and AIC revenue more than doubled year over year, signaling momentum in Kornit’s recurring-revenue shift.
• Positive Sentiment: The company delivered positive operating cash flow for the 10th consecutive quarter, which supports balance-sheet stability and execution credibility.
• Positive Sentiment: Needham & Company raised its price target on Kornit Digital to $22 from $20 and reiterated a buy rating, implying meaningful upside from current levels. Needham Raises Price Target on Kornit Digital
• Neutral Sentiment: Second-quarter revenue guidance of $51 million to $55 million was slightly above the consensus estimate, suggesting the company expects growth to continue in the near term.
• Negative Sentiment: GAAP net loss widened to $8.2 million, and gross margin declined versus a year ago, reinforcing that Kornit is still working toward sustained profitability.
• Negative Sentiment: Adjusted EBITDA remained negative, so investors may remain focused on how quickly the company can translate revenue growth into durable earnings.

Analysts Set New Price Targets

Several research analysts have issued reports on KRNT shares. Needham & Company LLC raised their price target on shares of Kornit Digital from $20.00 to $22.00 and gave the stock a “buy” rating in a report on Thursday. Weiss Ratings restated a “sell (d-)” rating on shares of Kornit Digital in a report on Wednesday, March 25th. Wall Street Zen upgraded shares of Kornit Digital from a “sell” rating to a “hold” rating in a report on Sunday, April 12th. Finally, Morgan Stanley reiterated a “positive” rating and issued a $17.00 price objective on shares of Kornit Digital in a research note on Wednesday, February 11th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Kornit Digital currently has an average rating of “Hold” and an average price target of $20.75.

Kornit Digital Trading Down 3.7%

The firm has a market cap of $710.67 million, a price-to-earnings ratio of -51.16 and a beta of 1.76. The firm’s 50-day moving average is $15.32 and its 200-day moving average is $14.55.

Kornit Digital (NASDAQ:KRNT) last posted its quarterly earnings data on Wednesday, May 13th. The industrial products company reported ($0.01) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.01). The firm had revenue of $48.54 million for the quarter, compared to the consensus estimate of $46.67 million. Kornit Digital had a negative net margin of 6.49% and a negative return on equity of 1.07%. The business’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.01 EPS. Analysts forecast that Kornit Digital Ltd. will post -0.17 EPS for the current fiscal year.

Hedge Funds Weigh In On Kornit Digital

Hedge funds have recently bought and sold shares of the company. Polar Asset Management Partners Inc. boosted its holdings in shares of Kornit Digital by 21.1% in the 3rd quarter. Polar Asset Management Partners Inc. now owns 779,559 shares of the industrial products company’s stock worth $10,524,000 after buying an additional 135,709 shares during the last quarter. Invenomic Capital Management LP purchased a new position in shares of Kornit Digital in the 3rd quarter worth about $6,356,000. Medina Value Partners LLC purchased a new position in shares of Kornit Digital in the 3rd quarter worth about $12,732,000. Ironwood Investment Management LLC purchased a new position in shares of Kornit Digital in the 3rd quarter worth about $1,006,000. Finally, Thompson Investment Management Inc. boosted its holdings in shares of Kornit Digital by 11.0% in the 4th quarter. Thompson Investment Management Inc. now owns 876,977 shares of the industrial products company’s stock worth $12,611,000 after buying an additional 87,216 shares during the last quarter. 92.76% of the stock is owned by hedge funds and other institutional investors.

About Kornit Digital

Kornit Digital Ltd. (NASDAQ: KRNT) is a global technology company specializing in digital textile printing solutions. Headquartered in Rosh Ha’Ayin, Israel, Kornit develops and manufactures an integrated ecosystem of industrial inkjet printers, proprietary NeoPigment inks and pretreatment systems. Its product portfolio addresses a range of applications including direct-to-garment, direct-to-fabric, digital embellishment and hybrid manufacturing, enabling businesses to produce custom apparel, sportswear, fashion and home textiles on demand.

The company’s flagship offerings include the Avalanche and Atlas series for high-volume production, as well as the Storm and Helix lines designed for mid-to-large scale operations.